Proposition C could mean more jobs, more income

Friday

Oct 31, 2008 at 12:01 AMOct 31, 2008 at 1:06 AM

Proposition C, otherwise known as The Missouri Clean Energy Initiative, is the last one that voters will have to consider when going to the polls Tuesday. If this initiative passes, and is implemented according to the directives included in it, Proposition C could be a turning point for the state of Missouri in terms of new jobs, income and a big boost in economic activity within the state.

Polly Taylor

Proposition C, otherwise known as The Missouri Clean Energy Initiative, is the last one that voters will have to consider when going to the polls Tuesday.

If this initiative passes, and is implemented according to the directives included in it, Proposition C could be a turning point for the state of Missouri in terms of new jobs and income, and a big boost in economic activity within the state.

The writers of the Proposition C estimate that it will create more than 9,500 new jobs over the next 13 years, and almost $857 million in additional income for workers in the state. The economy could receive a big shot in the arm with almost $3 billion generated as a result of the initiative.

In plain English, Proposition C would require investor-owned utilities in Missouri to acquire 15 percent of their electricity from renewable sources by the year 2021. Should Proposition C pass, Missouri would become the 27th state to adopt the Renewable Electricity Standard (RES).

Investor-owned utilities in Missouri include; Ameren, Empire, Aquila, and Kansas City Power and Light.

The jobs that would be created would include manufacturing, construction and operation positions. The state of Texas has already implemented RES, and has begun to document the impact it has had on the state.

Reduced greenhouse gas emissions and cleaner air would also be two more benefits as a result of the initiative in addition to saving Missouri residents an estimated $331 million in reduced energy costs over 20 years. It would also reduce carbon emissions, which is estimated to have the same impact as removing 2 million cars from the road.

The creators of the initiative see it as a chain reaction. Once implemented, it would create jobs, which would create income, allow for investment, and increase consumer spending.

Voters may wonder where the manufacturing aspect comes into the initiative. Wind and solar energy are two of the least expensive of the renewable energy sources, and northwest Missouri already has a wind farm, and numerous individuals and businesses have started installing solar panels.

However, in order to capture the energy from the wind, there must be wind turbines, and solar power needs panels to capture the heat. More wind turbines and solar panels will create more jobs, and bring in more sales. Indirectly, all of the components needs for the turbines such as brakes and couplings will need to be manufactured and replaced on a maintenance schedule, which will create more jobs and investments.

In addition to the 9,500-plus jobs that are estimated to be created as a direct result of the energy initiative, it is also estimated that an additional 12,800 indirect jobs could be created due to manufacturing and servicing jobs.

Landowners who consent to leasing property for wind-powered turbines are receiving $3,000 to $5,000 a year with some contracts good for 25 years. A single wind farm can generate over $1.5 million in revenue for a community.

Presently, more than 82 percent of our electricity is the product of coal power plants, with the coal being purchased by Missouri for $9 billion a year from out of state locations. Coal fired power plants are also one of the biggest contributors to climate change, and have been linked to the high occurrence of asthma and lung disease in the state.

Another benefit of Proposition C is the 1 percent rate increase cap that has been written into it. This will insure consumers that they will not experience a jump in rates as Missouri begins to find other sources of renewable energy, and diversifies the power supply.

In the year 2011, utilities will be required to get 2 percent of their electricity from renewable energy sources, in 2014, 5 percent; in 2018, 10 percent; and in 2021, no less than 15 percent. At least 2 percent of all renewable energy will be expected to come from solar power.

Penalties of at least two times the average market value of renewable energy credits will be levied against the utility companies if they cannot prove that any non-compliance with Proposition C was beyond reasonable control.

Each electric utility will be required to give retail customers who install new or expanded solar systems a rebate of $2 per watt, up to 25 kilowatts, beginning in 2009.